Supreet Chemicals Sets Stage For Rs 499-Crore IPO, Eyes Expansion And Debt Reduction

Supreet Chemicals Ltd, a Gujarat-based specialty chemical manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to Rs 499 crore through an Initial Public Offering. The filing, made on September 5, 2025, marks a pivotal moment in the company’s growth journey, with proceeds earmarked for capacity expansion, debt repayment, and general corporate purposes.

 

The IPO will consist entirely of a fresh issue of shares, with no offer-for-sale component, indicating the company’s intent to channel all raised capital into operational and strategic development.

 

Key Highlights From The DRHP

 

- Supreet Chemicals plans to raise Rs 499 crore through a book-built IPO  

- Rs 310 crore will be allocated to set up a new greenfield manufacturing facility, referred to as Plant 4  

- Rs 65 crore will be used to repay or prepay outstanding borrowings  

- The remaining funds will support general corporate expenses and working capital needs  

- A pre-IPO placement of up to Rs 99 crore may be undertaken, which would reduce the size of the fresh issue accordingly  

 

Business Overview And Product Portfolio

 

Supreet Chemicals specializes in complex chemical intermediates used across multiple industries including textiles, pharmaceuticals, agrochemicals, performance chemicals, and personal care. The company’s product portfolio includes aromatic amines, sulphonamides, amino phenols, and other specialty molecules. It is one of the few Indian firms capable of executing up to 15 multi-step chemical processes, positioning it uniquely in the domestic and global market.

 

- In FY25, Supreet offered 135 products, with 74 involving up to five multi-step processes and 61 involving six to fifteen steps  

- Key products include MCA, NAPSA, SAMBA, and other benzene and phenol derivatives  

- The company served 215 customers in FY25, including 27 international clients  

 

Financial Performance And Growth Trajectory

 

Supreet Chemicals has demonstrated strong financial recovery and growth in FY25, following a challenging FY24. The company’s net profit surged 103 percent to Rs 51.9 crore, while revenue rose 51.2 percent to Rs 362.5 crore. This rebound reflects improved operational efficiency, higher product demand, and strategic cost management.

 

- FY24 saw a 54.6 percent drop in profit and a 23.3 percent decline in revenue due to market headwinds  

- FY25 recovery was driven by increased exports and higher-margin product sales  

- Outstanding borrowings stood at Rs 203.5 crore as of July 2025, prompting the debt reduction plan  

 

Manufacturing Expansion And Strategic Intent

 

The proposed Plant 4 will be a greenfield facility designed to enhance production capacity and support the company’s growing product portfolio. The investment of Rs 310 crore will be directed toward land acquisition, machinery, utilities, and environmental compliance.

 

- The new plant will focus on high-complexity molecules and scalable production lines  

- It will support backward integration and reduce dependency on external suppliers  

- The expansion is expected to improve margins and enable entry into new global markets  

 

Market Position And Industry Outlook

 

Supreet Chemicals operates in a rapidly growing segment of the global specialty chemical intermediates market, which was valued at USD 1,309 billion in 2024 and is projected to reach USD 1,802 billion by 2029. The Asia-Pacific region accounts for over half of this demand, with India expected to grow at a CAGR of 10 percent between 2025 and 2030.

 

- The company’s listed peers include Deepak Nitrite, Aarti Industries, Atul, Balaji Amines, and Neogen Chemicals  

- Supreet’s ability to handle complex chemistries gives it a competitive edge in niche applications  

- The IPO is expected to attract strong investor interest due to the company’s growth potential and sectoral tailwinds  

 

Conclusion: A Strategic Leap Toward Scale And Stability

 

Supreet Chemicals’ Rs 499-crore IPO filing signals a strategic leap toward operational scale, financial stability, and market leadership. With a clear roadmap for expansion and debt reduction, the company is positioning itself to capitalize on rising demand for specialty chemical intermediates both in India and abroad. As the IPO process unfolds, investor attention will be closely focused on Supreet’s execution capabilities and long-term vision.

 

Sources: Livemint, Angel One, Chittorgarh